Is All Team required to participate in a franchisee's defense or indemnify them for damages in a copyright proceeding?

According to All Team's 2025 Franchise Disclosure Document, All Team is not required to participate in a franchisee's defense or indemnify them for damages or expenses in a copyright proceeding. The FDD states that while All Team claims copyrights in its Confidential Operations Manual, sales material, brochures, and related items, they "need not participate in your defense and/or indemnify you for damages or expenses in a proceeding involving a copyright."

This means that if a franchisee is sued for copyright infringement related to the materials used in operating the All Team franchise, All Team is not obligated to provide legal defense or cover any resulting damages or expenses. The franchisee would be solely responsible for handling the legal matter and covering any associated costs.

This lack of required support in copyright proceedings could pose a significant financial risk for franchisees. It is important for prospective franchisees to understand this potential liability and consider obtaining their own legal counsel and insurance to protect themselves against such claims. Franchisees should also ensure they strictly adhere to All Team's guidelines for using copyrighted materials to minimize the risk of infringement.